Zimbabwe under siege

Posts Tagged ‘Asian Investment Development Bank’

“And then there are those 35,000 kilometers of highways and rail lines India wants to build over the next five years. Some India analysts are apparently wondering how to finance all that at an estimated cost equivalent to 3.4 percent of GDP.

That should be easy because the cost is just a little more than what China takes as a one-year trade surplus with India. So, China can recycle that money back to India to build modern infrastructure that would set the foundation for India’s sustainable, faster and balanced growth.”

Recycling the trade deficit as inward investment is a brilliant idea, a win/win idea and one which can be applied equally to other countries which habitually run a large trade deficit with China, most notably, the USA and the UK.

Trust is an economic variable sounded like an echo swirling around Wuhan’s East Lake in China as President Xi Jinping was hosting last Friday and Saturday Indian Prime Minister Narendra Modi for an “informal,” “heart-to-heart” summit.

A lot of preparation is going into the visit of Chinese President Xi Jinping to India next month. It is difficult to recall such dense traffic in the run up to a high level India-China exchange. It must be the ‘Modi effect’– suffice to say, Beijing is approaching Xi’s visit with high expectations of a historic breakthrough in relations with India.

“The fact of the matter is that the headlong plunge into a new level of military involvement in the Middle East (Iraq) and Eurasia (Ukraine) incapacitates the US from advancing the rebalance strategy in Asia and China is taking advantage of it. Wang’s meeting with the US secretary of state John Kerry in Myanmar yesterday gives a flavor of the Chinese confidence that the Barack Obama administration has its hands full during the remaining period of the presidency (until end-2016) and comes under compulsion to “respect China’s legitimate rights and interests” in the Asia-Pacific and to enter into a constructive engagement with China.” So much for Obama’s grand pivot to China initiative!

M.K.Bhadrakumar Indian Punchline 10th August, 2014 The frequency of high-level interaction between India and China has perceptibly increased since the new government led by Prime Minister Narendra Modi took over in late May. This cannot but be viewed as signaling the Modi government’s foreign-policy priority, although Beijing set the ball rolling with the extraordinary diplomatic move to depute China’s foreign minister Wang Yi to Delhi in early June in a manifest desire and sense of urgency to open lines of communication with the new Indian leadership.